Oligopoly

Rizaldy Ari Herdianto Arya Nurraga Kusumah

Oligopoly
few

firms either homogeneous or differentiated products interdependence of firms - policies of one firm affect the other firms substantial barriers to entry examples: auto industry and cigarette industry

Collusion and Competition

Oligopoly firms may collude (act as a monopoly) and earn positive profits.
OR Oligopolists may compete with each other and drive prices down to where profits are zero.

Three Types of Mergers

Horizontal Merger
the combination under one ownership of the assets of two or more firms engaged in the production of similar products

example: two steel manufacturing companies merging

Vertical Merger
the creation of a single firm from two firms, one of which was a supplier of the other example: a lumber company and a builder merging

Conglomerate Merger
the combining under one ownership of two or more firms that produce unrelated products example: a tire manufacturer and a coffee company merging

Examples

Some recent examples of well-known mergers are as follows:

British Salt operating in UK merged with TATA Chemicals based in India. Zain Telecommunications operating in Africa merged with Bharti Airtel Limited based in India. Bank of Rajasthan operating in India merged with ICICI Bank (India).

Example

Sales Chart

Sales chart (adidas)

Fact
in 2012,nike and adidas opened about 3 convinience store in USA In 1985 nike made air jordan shoes,it sales about 5 million until now FIFA refeeres using adidas until today

Reference
Wikipedia Nike.com Adidas.com Kalyan-city.blogspot.com